TikTok in Trouble: Trump Extends Deadline Again as EU Plans €500M Fine Over Data Privacy

Former President Donald Trump has again postponed the deadline for TikTok's parent company, ByteDance, to sell its US operations. Originally scheduled on April 5, the new deadline offers the Chinese tech giant 75 extra days to finalize a deal with American buyers. This follows a previous 75-day extension in January. Trump underlined that he does not want TikTok banned but rather that it be controlled by an organization based in the United States, highlighting national security concerns.

Trump also brought up existing trade problems with China, where both countries have recently raised tariffs. The United States hit a 34% tariff on Chinese imports, and China replied by imposing the same tariff on US goods. Trump highlighted TikTok's situation as an example of why tariffs are a vital economic tool, implying that successful discussions could result in lower trade tensions.

Several American companies, including Amazon, Oracle (with Blackstone), Andreessen Horowitz (a16z), and Perplexity AI, have expressed an interest in acquiring TikTok's US operations. The urgency of the sale derives from a US law passed in April 2024, known as the PAFACA Act, that obliges foreign-controlled applications like TikTok to sell their US businesses for national security considerations.  The Supreme Court even confirmed the regulation, resulting in a brief TikTok ban.

Meanwhile, TikTok is now facing criticism in Europe. The EU is considering fining the corporation around €500 million ($552 million) for illegally moving user data to China without permission. This follows Ireland's €345 million fine in 2023 for violating child data protection regulations.

Both sides of the Atlantic are exerting significant pressure on ByteDance to follow local regulations—or face bans and large fines.

This article is based on information from The Tech Portal